To amend title 11, United States Code, to clarify the rules for the exceptions to the discharge of the debt of an individual debtor, and for other purposes.

This bill changes the federal bankruptcy code rules on which debts an individual cannot wipe out in bankruptcy. Under the bill, a debt tied to false pretenses, a false representation, or actual fraud could not be discharged only if the debtor personally committed that act. Debts tied to a false written financial statement would remain non-dischargeable only when the statement was used by the debtor. Debts from fraud or defalcation while acting as a fiduciary, embezzlement, or larceny would also stay in place only when the debtor committed the act.

Full text and official record on Congress.gov

Sponsors

• J. Luis Correa Democrat sponsor
• 1 cosponsors